(CINE ), UK’s biggest cinema exhibitor chain has announced that it has secured $200m in incremental loans from existing lenders. These loans will mature in May 2024.
The London-listed company addressed shareholders and stated that it is excited about the “unprecedented slate” of films in the second quarter of 2021, particularly in the fourth quarter.
CEO, Mooky Greidinger stated that the Group has significant operating flexibility with the announcement of additional liquidity today.
According to the firm, it has also amended covenants on existing loans facilities in order improve its financial situation. This will help further support the Group when cinemas reopen trading.
This will include lowering the minimum liquidity requirement and relaxing cash use restrictions, as well as other modifications in response to COVID-19’s impact on the industry.
It stated that it was monitoring the evolution of virus and its possible impact on business.
Cineworld Group shares traded 3.05% lower Friday morning at 64.7p
Cineworld raised a $213m convertible debt in March 2021. Later, the group was awarded a $203m reimbursement under the US CARES Act. This, along with additional liquidity from incremental loans and tight cash control, will give the Group the flexibility and resilience it needs to carry out its business strategy.
The Company stated that since April 2021, cinemas have reopened and trading has improved. It is now well-positioned to take advantage of pent-up customer demand as well as the extremely strong film slate through 2021.
Greidinger said, “We remain optimistic in the prospects of our business and continue looking forward to welcoming back our customers to the best place for a movie.” The Group stated that it will release its 2021 half year results next month, on 12 August 2021.